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Monday , November 19 2018

New round of talks to determine the best way to impose tax on local cos

Govt bodies, reps of private sector to meet

KUWAIT CITY, June 28: A new round of talks between concerned governmental bodies and representatives of private sector will begin soon to determine the best way to impose the previously agreed ten percent tax on local companies, reports Al-Nahar daily quoting sources from Ministry of Finance.

They explained that the discussions during the meetings will include reducing the tax to be imposed on foreign companies by five percent in order to equalize foreign companies with local ones in this regard. This move by the government came after calls were made by monitoring bodies for the government to equalize the collected tax.

The sources said implementation of Value Added Tax (VAT) has been postponed to 2021 in order to give the local market, traders and consumers an opportunity to be familiar with the changes the tax will bring about and its effects.

They stressed that the concerned bodies are on the verge of imposing selective tax on commodities that are harmful to health such as cigarettes, adding that the revenues expected from imposing selective tax is KD 200 million.

The sources revealed that the total revenues from tax collected in 2017/2018 in the form of customs tax and tax imposed on local companies were KD 558 million.

Meanwhile, another source from Ministry of Finance said oil revenues reached approximately KD 12 billion, and the capital expenditure exceeded KD 2.2 billion by the end of 2017/2018, registering an increase of KD 200 million compared to that of 2016/2017.

The source affirmed that the total expenditures reached 17.7 billion, which is KD 2.3 billion less than the estimated amount in the budget due to the rationalization policy adopted by the government including salaries and benefits offered to senior officials.

Assistant Undersecretary for Private Healthcare Services in the Ministry of Health Dr Fatmah Al-Najar disclosed that Private Health Sector is a strategic partner to Public Health Sector in the execution of plans and strategies for providing excellent medical and health services to citizens and expatriates, reports Al-Rai daily.

In a statement to the daily, Dr Al-Najar revealed that the ministry received 33 applications for licenses to set up hospitals, health centers, clinics and polyclinics. She pointed out that applications include the construction of 3 hospitals and expansion of existing ones, 15 for health centers, 10 for polyclinics, and 5 for clinics.

She further explained that one of the three applications for building hospitals was meant for general practice and had received a preliminary approval having satisfied all necessary procedures and conditions.

One other application for specialist hospital was still under review alongside a third one meant for the expansion of an existing hospital. The 15 applications for health centers include 13 for the establishment of dental centers and two others for human medicine.

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